Port loses another major client

Photo / Steven McNicholl

Ports of Auckland has suffered a further blow today with the news that Fonterra, the country's largest exporter, is set to withdraw its shipments from Auckland amid ongoing strike action at the port.

The move comes one month after shipping giant Maersk announced it was switching its $20 million Southern Star container service from Auckland to Tauranga.

Ports of Auckland chief executive Tony Gibson said the move was unsurprising.

"With MUNZ threatening further strike action, it is inevitable that customers will look for alternatives and contingencies. Shippers need certainty and reliable service."

The move will take effect at the end of the month and will see weekly trade worth around $27m re-routed through the ports of Tauranga and Napier instead of Auckland.

The union and the port have been at loggerheads over their employment contract, precipitating a strike and a lock-out last month - typically a peak period in the run-up to Christmas.

Gibson said the port was willing to continue mediation - 'but only when we receive a formal response to our latest offer, the ninth since negotiations began in August.'

Gibson said the latest offer was the port's best and final offer.

"It includes a generous 10 per cent rise on hourly rates, performance bonuses of up to 20 per cent on hourly rates, and the retention of existing benefits and entitlements in return for a new roster system that will provide increased operational flexibility while allowing workers to plan their rosters a month in advance.

"We have a business to run. In the best interest of customers, staff and the port's future, some constructive progress is needed from the union, and needed now," Mr Gibson said.

Meanwhile, the port is beefing up resources to keep terminal operations open through the continued industrial action.

Further strike action is planned for a 48-hour period between January 9 and January 11.

- NZ HERALD ONLINE